SIU secures tribunal order freezing Hillcrest property in R9.8 million UIF TERS fraud investigation

The Special Investigating Unit (SIU) has welcomed a Special Tribunal ruling granting a preservation order over a property valued at R2.7 million, linked to an alleged R9.8 million UIF Temporary Employer/Employee Relief Scheme (TERS) fraud case involving Ziqoqe Construction CC.

The order forms part of the SIU's efforts to recover public funds allegedly misappropriated through the Unemployment Insurance Fund's Covid-19 relief programme.

In a statement on Tuesday, the SIU said its investigation found that Ziqoqe Construction owner, Ndabezinhle Luthuli, submitted TERS applications on behalf of purported employees during the Covid-19 lockdown period between March and August 2020. The UIF subsequently paid the company a total of R9,836,047.06 in TERS benefits between July 2020 and September 2024.

However, investigators allege that the funds were never distributed to the 673 employees listed in the applications, nor were they repaid to the UIF. The investigation further revealed that many of the listed workers were "ghost employees", while several individuals contacted by investigators denied ever having worked for the company.

The SIU also identified a property located within the Sienna Estate Scheme in Hillcrest, eThekwini Municipality, KwaZulu-Natal, which was purchased in November 2023 for R2.7 million. Investigators believe the property was acquired using proceeds derived from the alleged fraudulent scheme.

As part of the probe, the SIU conducted search-and-seizure operations involving related individuals and entities on 12 December 2025.

The Special Tribunal has now ordered that the property, registered in Luthuli's name, be preserved pending the outcome of legal proceedings. The ruling prevents the property from being sold, transferred, or used as security unless authorised through a written agreement between the parties or by a court or Tribunal order.

The Tribunal further directed that Luthuli and Ziqoqe Construction remain responsible for all costs associated with the property, including levies, insurance premiums and other related expenses while the preservation order remains in effect.

The SIU's investigation is being conducted under Presidential Proclamation R.8 of 2021, which authorised the Unit to investigate allegations of fraud, corruption and maladministration involving UIF payments, including TERS claims made during the Covid-19 pandemic.

The SIU said it remains committed to tracing and recovering public funds lost through corruption and ensuring accountability for individuals who exploited emergency relief measures intended to assist businesses and workers during the pandemic.